IDEAS home Printed from https://ideas.repec.org/p/zbw/vfsc13/79697.html
   My bibliography  Save this paper

Piracy and Movie Revenues: Evidence from Megaupload. A Tale of the Long Tail?

Author

Listed:
  • Peukert, Christian
  • Claussen, Jörg
  • Kretschmer, Tobias

Abstract

In this paper we make use of a quasi-experiment in the market for illegal downloading to study movie box office revenues. Exogenous variation comes from the unexpected shutdown of the popular file hosting platform Megaupload.com on January 19, 2012. The estimation strategy is based on a quasi difference-in-differences approach. We compare box office revenues before and after the shutdown to a matched control group of movies unaffected by the shutdown. We find that the shutdown had a negative, yet insignificant effect on box office revenues.This counterintuitive result may suggest support for the theoretical perspective of (social) network effects where file-sharing acts as a mechanism to spread information about a good from consumers with zero or low willingness to pay to users with high willingness to pay.

Suggested Citation

  • Peukert, Christian & Claussen, Jörg & Kretschmer, Tobias, 2013. "Piracy and Movie Revenues: Evidence from Megaupload. A Tale of the Long Tail?," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79697, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc13:79697
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/79697/1/VfS_2013_pid_271.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Takeyama, Lisa N, 1994. "The Welfare Implications of Unauthorized Reproduction of Intellectual Property in the Presence of Demand Network Externalities," Journal of Industrial Economics, Wiley Blackwell, vol. 42(2), pages 155-166, June.
    2. Peitz, Martin & Waelbroeck, Patrick, 2006. "Why the music industry may gain from free downloading -- The role of sampling," International Journal of Industrial Organization, Elsevier, vol. 24(5), pages 907-913, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joost Poort & Jarst Weda, 2015. "Elvis Is Returning to the Building: Understanding a Decline in Unauthorized File Sharing," Journal of Media Economics, Taylor & Francis Journals, vol. 28(2), pages 63-83, June.
    2. Markus Pasche, 2014. "Welfare Effects of Endogenous Copyright Enforcement - the Case of Digital Goods," Jena Economic Research Papers 2014-008, Friedrich-Schiller-University Jena.
    3. Danaher, Brett & Smith, Michael D., 2014. "Gone in 60 Seconds: The Impact of the Megaupload Shutdown on Movie Sales," International Journal of Industrial Organization, Elsevier, vol. 33(C), pages 1-8.
    4. Buehler, Stefan & Halbheer, Daniel & Lechner, Michael, 2014. "Payment Evasion," Economics Working Paper Series 1435, University of St. Gallen, School of Economics and Political Science.
    5. Peukert, Christian & Aguiar, Luis & Claussen, Jörg, 2016. "Catch Me if You Can: Effectiveness and Consequences of Online Copyright Enforcement," Annual Conference 2016 (Augsburg): Demographic Change 145490, Verein für Socialpolitik / German Economic Association.
    6. Wojciech Hardy & Michał Krawczyk & Joanna Tyrowicz, 2014. "Internet piracy and book sales: a field experiment," Working Papers 2014-23, Faculty of Economic Sciences, University of Warsaw.
    7. Imke Reimers, 2016. "Can Private Copyright Protection Be Effective? Evidence from Book Publishing," Journal of Law and Economics, University of Chicago Press, vol. 59(2), pages 411-440.
    8. BELLEFLAMME, Paul & PEITZ, Martin, 2014. "Digital piracy: an update," CORE Discussion Papers 2014019, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. Wojciech Hardy & Michal Krawczyk & Joanna Tyrowicz, 2015. "Friends or foes? A meta-analysis of the link between "online piracy" and sales of cultural goods," Working Papers 2015-23, Faculty of Economic Sciences, University of Warsaw.

    More about this item

    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:vfsc13:79697. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: http://edirc.repec.org/data/vfsocea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.